On Feb. 17, 2009,
President Obama signed the American Recovery and Reinvestment Act of 2009
(Recovery Act), a critical measure to stimulate the economy. Among other
provisions, the new law provides major opportunities for the Department of
Health and Human Services (DHHS), its partner agencies, and the States to
improve the nation’s health care through health information technology (HIT) by
promoting the meaningful use of electronic health records (EHR) via incentives.
For a copy of the full bill, go to:http://www.hhs.gov/recovery/overview/index.html
Why you need to start planning your EMR migration now!
Federal Funds will be distributed through Medicare and Medicaid
incentive payments to Eligible Professionals (EPs) and hospitals who are “meaningful
EHR users.” The Recovery Act
establishes financial incentives beginning in January 2011 for EPs who are
meaningful EHR users. Beginning in 2015, payment adjustments will be imposed on
EPs who are not meaningful EHR users.
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Medicare Reimbursement Schedule
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Adopt
EMR in 2011
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Adopt
EMR in 2012
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Adopt
EMR in 2013
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Adopt
EMR in 2014
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Adopt
EMR in 2015+
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2011 Reimbursement Amount
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$18,000
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0
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0
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0
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0
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2012 Reimbursement Amount
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$12,000
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$18,000
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0
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0
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0
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2013 Reimbursement Amount
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$8,000
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$12,000
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$15,000
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0
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0
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2014 Reimbursement Amount
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$4,000
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$8,000
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$12,000
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$4,000
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0
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2015 Reimbursement Amount
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$2,000
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$4,000
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$8,000
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$12,000
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0
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2016 Reimbursement Amount
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0
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$2,000
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$4,000
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$8,000
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0
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TOTAL
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$44,000
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$44,000
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$39,000
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$24,000
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0
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Health Prof. Shortage Area
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$48,400
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$48,400
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$42,900
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$24,400
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0
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The incentive payment is equal to 75 percent of Medicare allowable charges
for covered services furnished by the EP in a year, subject to a maximum payment
in the first, second, third, fourth, and fifth years of $15,000; $12,000;
$8,000; $4000; and $2,000, respectively.
For early adopters whose first payment year is 2011 or 2012, the maximum payment
is $18,000 in the first year. There will be no payments for meaningful EHR use
after 2016. There would be no payments to EPs who first become meaningful EHR
users in 2015 or thereafter.
The Medicare fee schedule amount for professional services provided by an
EP who was not a meaningful EHR user for the year would be reduced by 1 percent
in 2015, by 2 percent in 2016, by 3 percent for 2017 and by between 3 to 5
percent in subsequent years.
For 2018 and thereafter, if the Secretary finds that the proportion of EPs who
are meaningful EHR users is less than 75 percent, then the reductions will be
increased by 1 percentage point each year, but by not more than 5 percent
overall.
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